SNCF CEO Jean-Pierre Farandou expresses opposition to a proposed one euro tax on SNCF notes, stating firmly that they are not in favor of this concept.
Get Ready for a Refresh on Your Rail Journey: SNCF's Renovation Plans
It appears that the French railway company, SNCF, is gearing up to renovate and maintain its railway lines, and they're looking to secure a hefty sum of 1.5 billion euros for this ambitious project. According to some transportation enthusiasts in the know, they might accomplish this by undercharging passengers by just a single euro per ticket.
SNCF's Chief Executive Officer, Jean-Pierre Farandou, was a recent guest on the popular "20 Heures" show, and he expressed the importance of this substantial fund for maintaining the French railway network in tip-top shape. He stated, "We need to make the general public understand the significance behind these big numbers so that the French railway network stays in excellent condition."
"Not Quite Yet"
Despite the need for 1.5 billion euros to fund the network's maintenance, which SNCF is currently shelling out an astonishing three billion euros a year for, Jean-Pierre clarified that this billion won't be requested in next year's budget. SNCF will handle the work on its own in 2025, 2026, and 2027. However, from 2028 onwards, securing this additional billion becomes crucial to avoid malfunctions, cable failures, and delays.
Regarding the idea of a surcharge on tickets, Jean-Pierre added, "I think I understand that people believe ticket prices are already quite high, and I must emphasize that this is most definitely not a proposal we're keen on advocating."
Dive deeper into this fascinating interview by watching the video above
While we didn't find specific details about SNCF's financing plan beyond 2027 in our research, it's common for railway infrastructure renovation and maintenance projects to be funded through a mix of government subsidies, borrowing, and operating revenues, with passenger fares playing a significant role. These increases in fares help offset rising maintenance costs and reduce reliance on public subsidies or debt.
SNCF's plan seems to involve a multi-faceted financing approach, with an increase in passenger contributions playing a crucial role in ensuring enough funds for rail line renovation and maintenance beyond 2027, along with other government and financial sources. However, the exact details on the breakdown or percentage increases in passenger fares beyond 2027 remain to be seen. Stay tuned for more updates on this exciting transformation in French rail travel!
Despite the significance of securing additional funds for maintaining the French railway network beyond 2027, SNCF's CEO, Jean-Pierre Farandou, highlighted that this will not be included in the 2025, 2026, and 2027 plans. In the longer term, the sports industry, finance, and business sectors may play a crucial role in providing the necessary funds, as SNCF's plan involves increasing passenger contributions, along with other government and financial sources, to offset rising maintenance costs and reduce reliance on debt.
